The IRS has delayed the effective date of the $600 threshold for Form 1099-K reporting and will treat payments subject to reporting in 2023 as a transition year. Form 1099-K is issued by third-party settlement organizations (i.e., credit card processors, online retailers, etc.). The current threshold for Form 1099-K is 200 or more transactions or an aggregate amount of $20,000 or more processed.
This delay does not affect the 2023 thresholds in place for Form 1099-NEC or any other 1099 Forms.
The IRS anticipates implementing a new Form 1099-K threshold of $5,000 starting with the 2024 reporting year (forms issued in January 2025).
The following article from the Journal of Accountancy has additional details about the delayed 1099-K filing threshold.
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